But Europe's third largest airline is still expected to make a loss this year, Weber said. (Full story)

Meanwhile shares in Europe's largest travel company TUI soared 7.9 percent to 12.00 euros after Chief Executive Michael Frenzel told the Die Welt newspaper that the company was making up for bookings lost during the war.

German stocks also made strong gains after retail sales data for April showed an increase of 1.7 percent -- the first rise in three months. (Full story)

In the U.S. on Friday, the major indexes hit their highest levels of the year. The Dow Jones industrial average rose 1.6 percent, the Nasdaq composite rallied 1.3 percent, and the S&P 500 index surged 1.5 percent.